Connect with us
iubh
Advertisement
Alpha
Advertisement
Hotflex
Advertisement
Advertisement
UBA
Advertisement
Patricia
Advertisement
app

Cryptocurrency

Why OMG integrated with Tether

OMG Network chose USDT (Tether) because it makes up most transfers moving across exchanges.

Published

on

Crypto traders transfer USDT 100,000,000, Why OMG integrated with Tether

High crypto exchange fees occur because the Ethereum blockchain is a valuable but limited resource. Exchanges and their users compete for this high-cost computational resource, by sending and receiving value.

But when demand is too high, Ethereum faces severe network congestion and transaction fees, and at times shoots up.

Further bombardment of the root chain prevents arbitrage from happening across exchanges, making each market a price island, and sky-rocketing crypto exchange fees. That’s when severe instances like the March 12th pandemic flash-crash can occur.

READ: Nigeria is Africa’s leader on Bitcoin transfers, transacts $8 million weekly

Why it’s happening: OMG Network chose USDT (Tether) because it makes up most transfers moving across exchanges, contributing to a large portion of the transaction fees on Ethereum.

By supporting USDT value transfers, the OMG Network can offload some of Ethereum’s burden, helping the entire ecosystem by lowering fees, helping price transparency, fairness, and improving market liquidity. Citing an illustrate, assume;

READ: 88.0% of all Bitcoins mined, as 2.5 million BTCs left to be mine

Exchange A’s users make about 200K withdraws/month;
Exchange B’s around 150k;
Exchange C’s around 100k;

Hotflex
Sigma Pensions
  • Assuming OMG Network captures withdraw and deposit, it can move up to 450,000 x 2 = 900,000 transactions off Ethereum/month
  • Assuming each transaction costs 1.5 USD, and the OMG Network charges one-third the gas fees of Ethereum; OMG Network reduces crypto exchange fees from 1,350,000 USD to 445,500 USD.

What you need to know: The OMG coin was designed as a white-label eWallet. It was designed on the Ethereum blockchain by a Thailand-based financial services company called Omise. Its full name is OmiseGo.

  • OmiseGo helps in easing the transfer of coins from one blockchain to another, without using a crypto exchange.
    Most blockchain ecosystems are limited by low throughput, high and unpredictable transaction fees, and poor user experience.
  • A few months back the federal agency in charge of regulating crypto assets in Japan, the Financial Services Agency (FSA), has given OMG Network, formerly known as OmiseGo, approval for the sale of its native crypto coin in the world’s third-largest economy.

READ: Ethereum transaction fees drop by 80%

Recall Nairametrics a few months ago, broke the news that Thailand-based Fintech firm, SYNQA, the parent company of OmiseGo (previously called Omise Holdings), secured $80 million in capital, via a Series C investment round, led by SCB 10x, a subsidiary of the Siam Commercial Bank. Asia-based VC group SPARX also took part in the round.

Other investors included Japan’s Toyota Financial Services Corporation, Sumitomo Mitsui Banking Corporation, SMBC Venture Capital, and the Aioi Nissay Dowa Insurance Corporation.

Stanbic 728 x 90

Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment trading. Message Olumide on Twitter @tokunboadesina. He is a Member of the Chartered Financial Analyst Society.

Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Cryptocurrency

Unknown Bitcoin whale moves $714 million, Bitcoin stays above $60,000 mark

The flagship crypto traded at $60,514.60 on the FTX exchange with a daily trading volume of $45.5 billion.

Published

on

$700 million worth of Bitcoin moved by an unknown identity

Bitcoin whales are moving the vastly used treasury crypto in large amounts amid price volatility and bullish rush, as Bitcoin bulls regain control above the $60, 000 mark.

Data retrieved from BtcBlockBot an advanced crypto blockchain tracking and analytics firm, an anonymous cryptocurrency user revealed someone (possibly http://coinbase.com) moved 11,901 BTC $714 million in block 678,688.

Whale alert! 🐋 Someone (possibly http://coinbase.com) moved 11,901 BTC $714 million in block 678,688

READ: XRP surges by 150% in 7 days as Ripple posts early victories against SEC

The tracker further disclosed that the whale may have come from the world’s pioneer crypto exchange, Coinbase.

Nairametrics’ research has recently seen the surge in unknown crypto transactions involving Bitcoin, Ethereum, and other top crypto assets at levels not previously seen in the cryptoverse suggesting that more institutional players are getting into the game.

At the time of writing, the flagship crypto traded at $60,514.60 on the FTX exchange with a daily trading volume of $45.5 billion. Bitcoin is down 0.04% for the day.

Sigma Pensions

READ: Why Bitcoin is still going up

During bull trends in the cryptoverse, these large entities can take profit on their positions, especially if the futures market is overcrowded.

Wealthy investors reducing their crypto exposure to rebalance their portfolios can cause high price swings in the market, especially when accompanied by cascading liquidations.

However, recent data suggests otherwise as data retrieved from Glassnode points at entities holding more onto the world’s most popular crypto, rather than selling; as data shows Bitcoin balance on Crypto Exchanges just reached a 2-year low of 2,337,271.262 BTC.

A previous 2-year low of 2,338,724.621 BTC was observed on 08 April 2021.

Stanbic 728 x 90

READ: FG moves to recover N5.2 trillion debt owed by firms, individuals

 

Continue Reading

Cryptocurrency

XRP surges by 150% in 7 days as Ripple posts early victories against SEC

This surge has pushed the fast-rising crypto into the top 5 cryptos by market value, behind only Bitcoin, Ethereum and Binance Coin.

Published

on

XRP, Ripple's co-founder earned $411 million from selling XRP in 2020

Amid the strong bullish rally at play in the cryptoverse, Ripple’s XRP looks to be leading the way with a push as it almost triples in value following a series of legal victories and social media rumours of relisting at some crypto exchanges like Coinbase.

This surge has pushed the fast-rising crypto into the top 5 cryptos by market value, behind only Bitcoin, Ethereum and Binance Coin.

At the time of writing this report, XRP traded at $1.47 with a daily trading volume of $29.3 billion. XRP is up 147% for the week with a current market value of about $67 billion.

READ: Why this unknown crypto with over 600% gain in 3 months, might still explode

The surge in this crypto asset is coming amid a lawsuit from the SEC which accused XRP’s $1.3 billion initial coin offering of being an “unregistered securities offering.” The allegation led most American crypto multiple exchanges to delist the crypto and XRP lost its place as the 3rd largest crypto by market value.

That being said, crypto traders appear to be backing the crypto asset amid credible reports suggesting that Ripple lawyers have posted two victories in their legal tussle against the powerful American regulator, including gaining access to internal Securities Exchange Commission discussion history regarding crypto assets.

READ: XRP stands firm, investors wait on Ripple’s legal outcome

What this means

Such access by Ripple’s lawyers to these records would offer them insights into why the Securities Exchange Commission has not deemed Bitcoin and Ethereum a security asset.

Sigma Pensions

Continue Reading

  





Nairametrics | Company Earnings

Access our Live Feed portal for the latest company earnings as they drop.